class = “sc-cffd1e67-0 iQNQmc”>
Are you ready for some fun for Bitcoin fans? The world’s oldest cryptocurrency, which was chasing records in February and early March, has had to give up a lot in the last few days. On Tuesday night alone, Bitcoin lost $3,500. It currently stands at $64,700 – 10 percent lower than on Friday ($72,000).
Other cryptocurrencies have suffered even worse price declines. Ethereum, the second-largest digital currency, has lost over 14 percent since Friday morning. Small currencies sometimes had to absorb losses of up to 40 percent. What is going on there? Is the crypto excitement over?
Two reasons for the accident
Experts say that the recent decline is due to various factors. Many investors will likely have taken their profits after the price rally (+175 percent in the last 12 months). On the other hand, uncertainty has been increasing since last week about when the US Federal Reserve will cut interest rates. Unexpectedly high inflation figures from the US dampened morale and at least called into question the hope of a rate cut.
It’s unclear whether things will get better again. The Bitcoin halving is still imminent in mid-April, which will further reduce the supply of new Bitcoins. One thing is clear: Bitcoin once again deserves its reputation as a highly volatile investment object.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
